Morocco seeks financing for $25bn gas pipeline
1 May 2026
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Morocco’s state-owned agency for oil, gas and mineral resources is preparing to launch a fundraising campaign for its planned $25bn gas pipeline to transport West African gas to the Mediterranean coast, according to officials.
This will be the first time the Office National Des Hydrocarbures & Des Mines (Onhym) has sought to raise capital since it was restructured as a joint-stock company in February.
The restructuring was implemented to try to bolster the agency’s “capacity to structure partnerships, mobilise diversified funding and support large-scale projects”, according to a company statement.
Under current plans, the proposed gas pipeline will extend for 6,900 kilometres, including onshore and offshore segments.
The Nigeria-Morocco Gas Pipeline (NMGP) will link gas deposits in Nigeria, Senegal and Mauritania to 10 neighbouring African nations.
According to the plan, the project’s northern terminus will connect to the existing Maghreb-Europe Gas Pipeline, which links Morocco and Spain.
In its statement, Onhym described the planned pipeline as a “major opportunity” to unlock some of the world’s largest untapped gas reserves, saying it would improve “Euro-African energy security”.
Last month, Omco, Morocco’s gas-transport firm, said that a final investment decision (FID) for the first phase is expected to be finalised before the end of this year.
Also last month, Amina Benkhadra, the director-general of Onhym, said that Nigeria and Morocco were planning to sign an intergovernmental agreement to formalise the legal and regulatory framework for the pipeline.
Benkhadra said that the agreement would establish a “high authority” for the pipeline.
This body will be based in Nigeria and include ministerial representatives from each participating country to ensure political coordination.
To navigate global financing challenges and complex cross-border logistics, the project is expected to be developed in stages rather than waiting for a single FID.
Early phases will link Morocco to gas fields in Mauritania and Senegal, while southern segments will connect Ghana to Cote d’Ivoire and eventually to Nigeria.
The pipeline is being designed with an annual capacity of 30 billion cubic metres a year, according to officials
Half of that volume is earmarked for Morocco’s domestic needs and exports to Europe, which has sought to diversify its energy sources following geopolitical disruptions.
To manage construction, a joint-venture project company will be formed between Onhym and the Nigerian National Petroleum Company.
Feasibility studies for the pipeline were completed last year.
Onhym awarded UK-based Penspen the phase 1 front-end engineering and design (feed) contract for the project in 2019.
Then, in 2022, Onhym awarded Australia’s Worley the phase 2 feed contract.
At the time, Worley said that the overall feed services would be managed by Intecsea, its offshore engineering consultancy business headquartered in the Netherlands.
It also said that Advisian, its global consulting business, will provide research connected to the acceleration of electrification and the feasibility of energy self-sufficiency in the region.
Its UK and Madrid offices would analyse the possibility of using renewable energy resources to power the pipeline.
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Qiddiya receives high-speed rail PPP prequalifications
1 May 2026
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Saudi Arabia’s Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company (QIC) and the National Centre for Privatisation & PPP, received prequalification statements from firms on 30 April for the public-private partnership (PPP) package of the Qiddiya high-speed rail project in Riyadh.
This follows the submission of prequalification statements for the engineering, procurement, construction and financing (EPCF) package on 16 April, as reported by MEED.
The prequalification notice was issued on 19 January, and a project briefing session was held on 23 February at Qiddiya Entertainment City.
The Qiddiya high-speed rail project, also known as Q-Express, will connect King Salman International airport and the King Abdullah Financial District (KAFD) with Qiddiya City. The line will operate at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.
The line is expected to be developed in two phases. The first phase will connect Qiddiya with KAFD and King Khalid International airport.
The second phase will start from a development known as the North Pole and travel to the New Murabba development, King Salman Park, central Riyadh and Industrial City in the south of the city.
In November last year, MEED reported that more than 145 local and international companies had expressed interest in developing the project, including 68 contracting companies, 23 design and project management consultants, 16 investment firms, 12 rail operators, 10 rolling stock providers and 16 other services firms.
In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project. UK-based consultancy Ernst & Young is acting as the transaction adviser, and Ashurst is the legal adviser.
Qiddiya is one of Saudi Arabia’s five official gigaprojects and covers a total area of 376 square kilometres (sq km), with 223 sq km of developed land.
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Saudi Arabia launches $2bn Jawharat Al-Arous project
1 May 2026
Saudi Arabia has launched Jawharat Al-Arous, an SR8bn ($2bn) private-sector-led residential development in north Jeddah.
The scheme covers 107 million square metres and comprises 18 residential neighbourhoods planned to accommodate more than 700,000 residents. It will provide more than 80,000 residential and commercial plots.
The masterplan also includes 41 government-backed infrastructure and service zones to support large-scale urban expansion.
The project was unveiled by Mecca Region Governor Khalid Al-Faisal and will be overseen by Saud Bin Mishaal Bin Abdulaziz.
According to a recent report by real estate firm Cavendish Maxwell, Jeddah’s residential stock stood at about 1.09 million units at the end of 2025, following the completion of around 4,000 units that year.
An expanding pipeline of about 18,000 units in 2026 and 22,000 units in 2027 is expected to bring total stock to around 1.14 million units by 2027, gradually adding supply without destabilising market equilibrium.
GlobalData expects the Saudi construction industry to grow by 3.6% in real terms in 2026, supported by increased foreign direct investment (FDI) and investment in the housing and manufacturing sectors.
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Damage to US bases in region expected to cost more than $15bn
1 May 2026
The $25bn estimate a Pentagon official gave US lawmakers on 29 April did not include the cost of repairing damage to US bases in the Middle East, and the real cost of the war is likely to be between $40bn and $50bn, according to CNN.
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Iranian strikes across the Gulf in the early days of the war significantly damaged at least nine US military sites in 48 hours, hitting facilities in Bahrain, Kuwait, Iraq, the UAE and Qatar.
Six US servicemembers were killed in an attack on a command post in Kuwait, and 20 more were injured.
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Read the May 2026 MEED Business Review
30 April 2026
Download / Subscribe / 14-day trial access The regional war – and resulting disruption to oil and gas shipping – has triggered a major global energy security shock that is likely to recalibrate long-term decisions on how energy is produced and consumed.
The effective closure of the Strait of Hormuz is exposing the vulnerability of Middle East supply chains and pushing import-dependent countries to strengthen energy security by expanding domestic fossil fuels, speeding up nuclear projects, and investing in renewables and storage.At the same time, higher prices are encouraging producers unencumbered by reliance on the Strait to boost output.
Like the oil shocks of the 1970s, the conflict is likely to have lasting effects, reshaping energy policies and partnerships and accelerating diversification away from existing arrangements. Read more here.
The conflict is also undermining the business case for Middle East liquefied natural gas (LNG) projects, as prices rise, demand drops and confidence in the reliability of the region’s suppliers is eroded.
May’s market focus is on the UAE, where disruption from the Iran war has challenged every assumption behind the country’s non-oil model.
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We hope our valued subscribers enjoy the May 2026 issue of MEED Business Review.
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Algeria extends bid deadline for stalled power plant30 April 2026
Algeria’s state-owned electricity and gas utility Sonelgaz has extended a deadline for contractors to submit expressions of interest for the construction of the 1.2GW Djelfa combined-cycle power plant.
The project is being procured through Sonelgaz’s power generation subsidiary, Societe Algerienne de l’Electricite et du Gaz – Production de l’Electricite (SPE).
In March, MEED reported that the utility was seeking contractors to complete works at the existing Djelfa plant, including the remaining construction, the supply of missing equipment and the assessment of installed equipment.
The original bid submission deadline for prequalification was 7 April. The new deadline is 5 May.
The tender is open to both local and international companies, and will be conducted in three phases: prequalification, preliminary technical assessment, and final technical and financial submission.
The retender follows earlier plans to complete the project through a Chinese consortium comprising China Energy Engineering Group Company, Northwest Electric Power Design Institute and Anhui Electric Power Construction Company.
This proposal was made after Spanish contractor Duro Felguera halted work on the project in June 2024.
According to MEED Projects, construction works had progressed to 72% at the time of the suspension.
It is understood that an agreement in principle was then reached to transfer the remaining works to the Chinese group after the Spanish firm entered a pre-bankruptcy phase in December 2024.
A company statement at the time said: “The Chinese group is committed to completing the plant construction, with commissioning scheduled to start in the ninth month following the final agreement.”
However, in October 2025, it was revealed that the attempt to transfer the project to a consortium of Chinese companies had failed, leaving the Spanish firm with an official demand to pay €413m in compensation to Sonelgaz.
This was revealed via a lengthy report containing a restructuring plan sent by Duro Felguera to creditors in Spain and the Madrid Financial Markets Authority.
Gas-fired power plants
Located in Djelfa province, the project remains a key part of Algeria’s power generation expansion plans.
Sonelgaz has been seeking contractors to build a separate 1.2GW combined-cycle gas-fired power plant in Aldrar since last April.
The most recent deadline extension was 29 April.
According to recent reports, Algeria has also begun construction of a power generation plant in El-Aouinet, with a total installed capacity of 1,406MW.
The combined-cycle gas turbine plant is being developed in partnership with China National Electric Engineering Company.
Gas-fired combined-cycle plants continue to account for the majority of Algeria’s electricity generation capacity. Data from MEED Projects indicates that more than 5,000MW of oil- and gas-fired power capacity is currently in the execution phase.
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